The Ashes hangover continues after Channel Seven partly blamed a $7 million revenue shortfall on the two-day Tests over the Australian summer, which were caused by England’s capitulation in Perth and a Melbourne pitch that proved too difficult for either side to subdue.
The impact of the unusually short run is still being felt in the game, causing returns to be lower than expected for the cash-strapped sport and even for the Australian players, who have a revenue-sharing agreement with the governing body.
Half-year results published on Wednesday by Southern Cross Media Group, parent company of Seven West Media, reported revenues of $712 million for the Australian free-to-air broadcaster of the Ashes, down 2.1% on last year and down 1% on November General Assembly guidance.
The swing between expected and realized revenues in such a short time frame was attributed to the declining interest of those booking ads and the cricket. Profits were $67 million, down 27% from the previous period.
“The revenue shortfall due to the guidelines is due to a weaker than expected advertising market in November and December, and the impact of shortened broadcasts of the Perth and Melbourne Ashes Test matches,” the company said in a statement.
In Perth, a blistering Travis Head century ended the first Test in two days, prompting refunds for ticket holders for days three and four. The MCG Test ended similarly, after curator Matthew Page said the pitch went “too far”.
Seven and subscription television provider Foxtel are halfway through a seven-year, $1.5 billion deal to broadcast international cricket during the Australian summer.
When advertisers have already booked slots during programs that ultimately don’t air, networks typically offer other inventory as “make-goods.” But the results suggest there was also an immediate financial trick.
Cricket Australia (CA) also suffered losses. The blow from the Perth Test was estimated at $4 million, and on Boxing Day – at the 100,000 capacity MCG – the deficit was reported to be as high as $10 million.
In late January, CA CEO Todd Greenberg said the shorter-than-expected series “hurt.”
“It’s not my job to give back, that’s not a given, so I would have much preferred those days to continue,” he told The Grade Cricketer podcast.
The impact extends beyond the governing body and its broadcasting partners.
“There is also some irony for the players, because at the time I was on the players’ side [at the Australian Cricketers’ Association] we have a revenue sharing agreement, so they take 27% of every dollar we make,” Greenberg said.
“I went to the sheds to see all the boys at the end of the Perth Test, including Trav [Head] and he said, ‘Sorry boss, we probably cost you some money.’ I said, “Trav, you probably cost yourself some money too.”
Cricket Australia reported a loss of $11.3 million for 2024-25, but expects to post a profit for the current summer.
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